TRIAL BALANCE AT $1/1/23$

$($Look at picture for chart$)$

The following is a summary of the transactions during the $2023$ year:

January $1-$ Paid $$8,000$ for salaries. Of that, $$5,500$ was for salaries payable the prior year and the rest was for salaries in the current year from Jan $1-$ Jan $10.($Hint$,$ you will have $3$ accounts on this journal entry.$)$

January $10-$ Provided catering services for customers for $$22,000$ on account.

February $1-$ Paid $$4,000$ for salaries to employees for the current period.

February $15-$ Provided catering services to customers for $$25,000$ for cash.

March $1-$ Prepaid $1$ year of rent in the amount of $$30,000$

March $30-$ Paid the Utility bill for March, $$1,800$

March $15-$ Provide catering services to customers for $$50,000.$ Of that, $$20,000$ was on account and the rest was in cash. $($This will be one journal entry with three accounts$).$

April $1-$ Paid $$10,500$ on accounts payable owed.

May $1-$ Collected on accounts receivable, $$6,300.$

June $2-$ Provided catering services to customers for $$32,500$ on account.

June $10-$ Paid $$10,000$ for salaries to employees for the current period.

August $15-$ Issue more shares of common stock in exchange for $$5,000$ cash.

August $20-$ Collected on accounts receivable, $$42,000.$

September $1-$ Provided services to customers for $$15,000$ for cash.

September $10-$ Paid $$10,000$ for salaries to employees.

October $12-$ Pax for repairs and maintenance expenses, $$2,200$

November $1-$ Borrowed $$10,000$ from the local bank with $10\%$ annual interest rate and signed a note promising to repay the full amount of debt and interest in two years.

November $2-$ Purchased equipment for $$10,000$ cash.

November $15-$ Purchase supplies on account in the amount of $$800.$

November $30-$ Provided catering services on account in the amount of $$35,000.$

November $30-$ Paid $$300$ on accounts payable owed.

November $31-$ Paid utility bill for November, $$1,800.$

December $15-$ Receive a deposit in advance from customers, $$5,000,$ for catering

services to be provided in the future.

December $15-$ Collect on accounts receivable, $$32,500.$

December $29-$ Pay $$8,000$ cash dividends to stockholders.

$5.$ Record adjusting entries $($make journal entries$)$ Remember these entries are made on December $31$ to adjust accounts to their correct balances before the financial

statements are created.

a$)$ Depreciation for the year on the equipment is $$5,000.$ You do not have to calculate anything; you are given the amount of depreciation expense and accumulated depreciation...you just need to put it in a journal entry.

b$)$ Supplies remaining on hand at the end of the year equal $$900.$ What amount of supplies did they have in total $($what they started with any amounts purchased during the year? Now, use that and the ending balance given here to determine the amount "used up$".$ What you used up is your expense. You'll also want to reduce the supplies account by the amount used up because you don't have them anymore.

c$)$ of the $$5,000$ paid in advance by customers on December $15,$ $$4,500$ of the work is provided by the end of the year $($Dec $31.)$ So how much did the company "earn"? Think about when a company can record revenue...when they earn it$!$

d$)$ Adjust the prepaid rent account. $($Recall that you paid for an entire year's worth and now that it is the end of the year, how much have you "used up$"?)$

e$)$ Make an entry to account for the interest accrued on the loan obtained.

$6.$ Post the adjusting entries $($Post each of the journal entry accounts you made in

requirement #$5$ to the T accounts adding the numbers to what was already there. You will now have new balances in some of the accounts.$)$ Put the letter of the entry next to the posting

$7.$ Prepare an adjusted trial balance$-$Make a new trial balance with all the new totals you have in your T accounts now that you posted adjusting entries.

$8.$ Prepare an income statement for the year of $2023$ and a classified balance sheet as of December $31,$

$2023$

$9.$ Record closing entries. Make the journal entries needed to close out the TEMPORARY ACCOUNTS. Watch the video in Chapter $3$ about closing if you need extra help.

$10.$ Post closing entries. Post those amounts from requirement $119$ journal entries to the correct T accounts. When you get done, you should have $"0"$ balances in your temporary accounts. Put a $"$C$"$ next to the posting

$11.$ Prepare a post$-$closing trial balance. $($So none of the temporary accounts will be on here...only permanent ones$).$ This is just the ending balance in every one of your T accounts.